M.A. Thesis:

Accruals and investors' reaction to the adjusting role of the independent and internal audito

Abstract In accounting, profit consists of two components: cash and accrual. The cash component of profit is the operating cash flows that can be extracted from the cash flow. The accrual component of earnings (accruals) is derived from the difference between earnings and operating cash flows. The main purpose of this study is to determine the effect of accruals and investors' reaction to the adjusting role of the independent and internal auditor in the Tehran Stock Exchange. This research was conducted for a period of 5 years in the years 2015 to 2019. Sample data of the studied companies were analyzed and their data were analyzed using Excel classification software and analyzed by Ives software. The results showed; There is a negative relationship between the type of accruals and investors' reaction to dividends, and this relationship is also significant. Considering that the Kasnik profit management model has been used for accruals, so based on theoretical principles, it was expected that this issue would reduce returns and dividends. On the part of the independent auditor, the relationship between the accruals and the investor's reaction to the dividend adjusts, and the relationship is positive and meaningful. The internal auditor also adjusts the relationship between the accruals and the investor's reaction to the dividend, and the relationship is positive and significant. Keywords; Accruals - Investor Response - Independent Auditor - Internal Auditor

Keywords: Keywords; Accruals - Investor Response - Independent Auditor - Internal Auditor